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Real Estate Tips
First Time Buyers >Affording A Home

Are you getting ready to buy your first home? It is important to know how much you can afford before you begin looking at properties. Talking with a lender and getting pre-approved for a loan puts you in a stronger negotiating position with sellers.

As a rule, your monthly housing costs should not exceed 28% of your monthly pre-tax income. These costs include the mortgage payment, real estate taxes, and insurance. If you have long-term debts, such as student loans or car payments, your monthly payments, including your housing costs, should be less than 36% of your pre-tax monthly income. Some loans, such as VA and FHA loans, are more flexible with these basic guidelines.

Depending on which type of mortgage you select, you can consider houses in various price ranges. An adjustable-rate mortgage will usually enable you to qualify for a higher loan amount. Your real estate agent can help you make the basic calculations. Remember that buying at the top end of your price range gives you more time to outgrow your home, and can save you money over the long term.

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Real Estate Trivia
Q 
What does the abbreviation PITI stand for?

A 
Principal, Interest, Taxes and Insurance are the four major items included in a monthly mortgage payment.
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Craig Lightle & Team, Broker, real estate agents and broker for Anchorage, Eagle River and Peters Creek, Alaska home listings, property and land for sale - NUMBER1EXPERT(tm)

Craig Lightle & Team
Premier Properties LLC

400 West Benson Blvd. #201
Anchorage, AK 99503
Local: 907-929-7806
Fax: 907-868-9068
Toll Free: 877-868-9700
craiglightle@NUMBER1EXPERT.com

Real estate expertise and over a decade in the real estate field make Craig Lightle a highly sought-after professional. "With the confidence of having over 80% of my business coming from repeat clients and their referrals, I am confident that I will make you my next client for life."

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